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THE DIOCESE OF NEWARK
Present: The Rt. Rev. John P. Croneberger; President; Mr. John Zinn, Treasurer; Mr. Michael Francaviglia, Secretary; Diane Sammons, Esq., Chancellor. Elected by Districts: Mr. Steven Boston, The Rev. Christopher Brdlik, The Rev. Janet Broderick, Ms. Faith Gideon Brown, The Rev. Lu-Anne Conner, Ms. Glenda deKruif, Mr. Henry Faulkner, The Rev. David Gable, The Rev. Mariano Gargiulo, Ms. Lois Gray, Mr. Robert Harwood, Ms. Susan Kynor, The Rev. Paul Olsson, Mr. Andrew Piccirillo, Ms. Mary Sunden, Ms. Patty Watts, The Rev. Fain Webb. Bishop's Appointments: Mr. Sidney King, The Rev. Gray Lesesne, Ms. Carol Taylor. Absent: The Rt. Rev. Carol Gallagher, Assistant Bishop; The Rev. George Kaswarra (was present for the working group time), The Rev. Kathryn King, The Rev. William Potter, The Rev. Prince Singh (was present for an earlier portion). (Mr. Robert Harwood was absent) ECW: Mrs. Doris Mardirosian Staff: Canon R. Carter Echols; Ms. Kai Alston and Ms. Kitty Kawecki (for the working group time). Others: Carlotta Budd, Esq., chair of the Standing Commission on Clergy Compensation COUNCIL WORKING GROUP MEETINGS The working groups met separately for Bible study (Philippians 2:5-11) and discussions The meeting was opened at 8:00 p.m. with prayer by Ms. Susan Kynor. AGENDA The agenda was adopted with the additions of the Jersey City Episcopal Community Development Corporation Board of Trustees election, a report from the Outreach Working Group and a report from the Transition Committee. MINUTES Motion: It was moved and seconded to accept the minutes for the meeting of June 14, 2006. The motion was adopted. EPISCOPAL COMMUNICATIONS Bishop Croneberger's comments included: . Welcomed Carlotta Budd, chair of the Standing Commission on Clergy Compensation. . The Rt. Rev. Carol Gallagher and The Rev. William Potter were excused from the meeting since both were nominees for bishop. . Clergy and parish changes that occurred recently: The Rev. Dwight Neglia was retiring from St. Agnes', Little Falls; The Rev. Margaret Reinfeld Karda resigned from Good Shepherd, Ringwood; The Rev. Paul Hunt to St. Dunstan's, Succasunna as interim; The Rev. Susan Butler as interim to Epiphany, Allendale; The Rev. Abigail Hamilton retired in mid-August; Holy Innocents', West Orange, and All Saints', Orange were in merger finalizations, and worship would be located in Holy Innocents'; The Rev. John Edward resigned from Holy Trinity, West Orange; The Rev. John Hamilton resigned as curate at Grace, Newark; St. James', Upper Montclair called the Rev. John Perris; Christ, Ridgewood called the Rev. Elizabeth Searles; Grace, Union City called the Rev. David Veale; St. Andrew's, Newark called Br. Robert Hagler. . All parochial reports were received by the deadline of September 1, 2006. . The special convention will be held on Saturday, September 23, and will begin with a Eucharist at 8 a.m. in Trinity + St. Philip's Cathedral; the business session will be called to order at 10 a.m. . A memorial service was scheduled for the Rev. Dana Rose on Saturday, September 16 at 3 p.m. . Ruben Jurado will be received into the Episcopal priesthood on Saturday, September 16 at Trinity, Kearny. . Jeremiah Williamson will be ordained to the diaconate on Tuesday, September 19 at Grace, Madison. CLERGY MEDICAL INSURANCE Canon Carter Echols reported that this was the time of year when the selection of insurance plans was made. There was no active insurance committee and the Standing Commission on Clergy Compensation took leadership to make recommendations for Council decision. At the special convention, the open enrollment period will be known, but it was anticipated to remain open until at least the end of October. The Medical Trust will have a display at the special convention with information about the various plans and other health related matters. Carlotta Budd, Esq., chair of the SCCC, and Canon R. Carter Echols, Canon to the Ordinary, presented a list of the medical insurance plans from the Episcopal Church Medical Trust for 2007 as recommended by the SCCC. The commission wanted to offer four plans plus the high deductible health plan. The Medical Trust was no longer offering Cigna Northern NJ (HMO), which happened to be the most expensive plan in prior years. The Commission was recommending Cigna Nation (HMO) as an alternate. The other plans on the list were: Episcopal Care PPO, Aetna Choice POS II, Aetna National HMO, Aetna National POS, and CIGNA High Deductible Health Plan/HSA. The Commission wanted to eliminate the Episcopal Care PPO, and begin to offer the high deductible health plan with a health saving account. The commission was hopeful that the council would appoint an insurance committee for future insurance planning. Those twenty-one people who were in Episcopal Care PPO will be notified that the plan would be eliminated. There were another 29 people who were in the Cigna Northern NJ (HMO) who would also be informed of the change in their plan. It was not known if the physicians in Episcopal Care PPO were available in the other plans. The plans included standard prescription drug coverage and the mental health supplement rider. The enrollment period will be extended by the Medical Trust for the diocese. This will enable information made available at the special convention in September and the wardens' conference in late October. There was some concern expressed that there was no PPO plan being offered. The Medical Trust administered the high deductible health plan, not the parishes. Motion: It was moved and seconded that the diocese offers to the clergy and lay employees five medical insurance health plans for the year 2007; and, that those five plans would be: Aetna Choice POS II, Aetna National HMO, Aetna National POS, CIGNA National (HMO), and CIGNA High Deductible Health Plan/HSA, eliminate the Episcopal Care PPO. The motion was adopted with two objections. LAY PENSION PLAN Mr. John Zinn reported on the situation with the Diocese of Newark's lay pension plan, a defined benefit plan. The diocese uses Milliman, a consulting and actuarial firm for professional advice. The assets of the fund are invested in the Diocesan Investment Trust (DIT) through the Trustees fo the Episcopal Fund. For many years the plan was over funded and no contributions were required. Over the past five years the plan has experienced lower returns on investments, an aging population and significantly lower interest rates. Contributions to the fund were resumed in 2004 with funds from the diocesan budget and bequests. These amounts have not been sufficient. There was currently a deficit of $400,000 in the plan. In order for all accrued benefits to be funded there would need to be a contribution of $400,000. There was a contribution of $30,000 from the 2006 budget. It was proposed that another $35,000 in bequests be deposited to the plan in 2006. Undesignated bequests had been invested in the endowment funds that provide income to the diocesan budget. In recent years a number of bequests have been with Council approval invested in the lay pension plan. The plan was also an endowment fund, the income from which paid lay pensions. The consultants determined that the 2007 contribution was $178,000 and increasing slightly to $181,000 in 2008. This assumed a ten year amortization of the deficit so that even without the deficit, pension contributions in the $120,000 range would be necessary. The diocese was not subject to any government regulations although they were worthy guideposts, and a twenty year amortization could be used but would not significantly change the situation. Contributions of that magnitude would have significant impact on future diocesan budgets. There were several alternatives, such as a gradual approach to the $180,000 level over a three or four year period with funding the difference from pending sales of property. Another alternative would be to freeze the existing pension plan and provide a different pension benefit for future lay employees. This would be moving from the defined benefit plan to a defined contribution plan. With the pending transition to a new bishop, major changes such as freezing the current plan should be the responsibility of the next administration. In the interim, a reasonable approach would be to an increased level of funding in the 2007 budget providing time for alternatives to be reviewed and decided. Motion: Mr. Zinn moved and it was seconded that $35,000 in undesignated bequests be invested in the lay pension plan of the Diocese of Newark. The motion was adopted without objections. TREASURER'S REPORT Mr. John Zinn, Treasurer, presented the report. A deficit for 2005 was projected, due to acutal pledge income falling short of budget. The intent was to use the 2005 financial statements to clean up the prior years of 2003 and 2004 that also had uncollected receivables. The deficit was estimated in the $50-75,000 range for 2005. Decisions on how best to address will be presented for action in October to clear up the balance sheets for the next administration. During summer of 2006, several churches communicated major reductions in their 2006 giving to the diocese, that will amount to a total pledge income about $50,000 below budget. After adjustments to the National Church and projecting other income and expense items, the reduction would produce a deficit of $22,000. Pledge income was budgeted by taking the total of church pledge estimates and increasing it by some modest multiple. This was done because historically church estimates of giving were unduly conservative so that actual pledge income exceeded budgeted pledge income. The amount added to the pledges in 2006 was 1.25%. In order to provide some allowance for additional pledge shortfalls, another projection was made reducing the multiple to .0625%. Net of adjusted giving to the National Church, a deficit of $32,000 would be produced. Adjustments to the expenses in the budget could be made so as not to limit as much as possible the options available to the next bishop. The adjustments would not include any cuts in existing staff, rather leaving such choice to the next bishop. Consistent with that concern, these cuts could be made: - Department of Missions Debt service: pay only the interest on the St. Thomas', Vernon loan, saving $9,000; - Ward J. Herbert Fund: eliminate 2006 funding of $5,000; - Debt Service: pay interest only, saving $5,000 - Districts: cut spending from $5,000 to $2,500. These cuts total $21,500 that would leave a deficit of $10,500, assuming all other projections were accurate. To reduce expenses further without eliminating staff positions would require a reduction in giving to the National Church (a reduction from 25% to 24% would equal about $26,000) or to furlough staff for one week (a one week salary expense of $20,000). The bishop and senior staff thought the first set of cuts should be made, and not to pursue the other two options at this time. A deficit of $10,500 was less than 1% of the entire budget and it was simply too difficult to project the results that accurately. A decision will be asked from Council in October after time for reflection. Some expressed a concern with paying the interest only on the debt. During this transition period, it will be difficult to project staffing for 2007 and how much input the new bishop will have in the formulation of the 2007 budget. Motion: It was moved and seconded to accept the report, subject to audit. The motion was adopted. TRANSITION COMMITTEE REPORT (Bishop Croneberger excused himself for this portion of the meeting.) The Rev. Chris Brdlik shared some of the plans to honor the Bishop and Mrs. Croneberger. He indicated that the recommendation by the Steering Committee for the new bishop's compensation package might need slight revision upward. A determination would be made in the next several days and reported to Council. CONGREGATIONAL VITALITY SELF-ASSESSMENT Ms. Carol Taylor presented on behalf of the Congregational Vitality working group the Diocesan Expectations for the Ministry Capacity Assessment tool for council endorsement. The capacity questions remained the same, as did the recommended process for use by congregations. The working group would like Council to agree that the expectations would be the policy of the diocese and endorsed as such in October. The self-assessment was a resource tool for congregations to use as an ideal. INCARNATION, JERSEY CITY Ms. Faith Gideon Brown presented the financial status report on behalf of Incarnation, Jersey City. The six-month report was a condition requested by Council in March of 2006 when financial support from the Jersey City funds was appropriated to Incarnation for the ministerial initiative for congregational development. Clarification was requested that a full audit was underway as required back in March and funded. Mr. Sidney King, warden, reported that a full audit was underway. COMPANION DIOCESE REPORT Canon Carter Echols reported on her recent week long trip to the Diocese of Panama during which she met with clergy and lay people during engagements with congregations and a clergy and lay conference. Seventy-five percent of the funds for Panama came from the ECUSA. The support was scheduled to end in 2010. There were great opportunities for partnering. STEERING COMMITTEE REPORT EMPLOYEE POLICIES & PROCEDURES Ms. Mary Sunden reported as part of a thorough organizational review, the board of Episcopal Community Development Corporation (ECD) reviewed and significantly revised the employment policies and created a new employment handbook, which was approved by the board at its June meeting. Diocesan Council 2001 action required that all employees working at Episcopal House, except the bishop(s), be covered by the Diocesan employee policies -- essentially the first Resolve of the suggested replacement resolution (below). ECD's revised policies do not comply with the 2001 Resolution because they vary from Diocesan policies in a number of ways, for the following reasons: 1) ECD is a different type of legal entity than the Diocese, and, consequently subject to differing governmental requirements in some areas. 2) ECD has employee policies in a number of areas not covered in the current Diocesan policy. 3) ECD has different policies than the Diocese in some areas by choice. While the Council Steering Committee felt that it may well be time for a thorough review, revision, and update of Diocesan employee policies, it did not feel that ECD should be asked to wait until such time as a review was undertaken before implementing ECD's own policies. It also recognize that the existing Council resolution caused legal difficulties for ECD as a different type of legal entity than the Diocese. The Steering Committee recommended passing the suggested resolutions, which soften the 2001 resolution by adding the second Resolved for ECD and any other applicable parties between now and when a review of Diocesan policies can be undertaken and completed. It was the opinion of the Steering Committee that the new ECD policies were in compliance with the second resolve. Motion: Mr. Sunden moved the following resolution: Resolved, That all employees of the Episcopal Diocese of Newark, except for the bishop or bishops, are covered by the Employee Policies and Procedures of the Episcopal Diocese of Newark; and, be it further Resolved, That all other employees working at Episcopal House are covered by employee policies and procedures not in conflict with those of the Episcopal Diocese of Newark. The motion was seconded and adopted. WARD J. HERBERT FUND BOARD RECOMMENDATIONS Motion: It was moved and seconded to suspend the rules to allow for the ratification of the Ward J. Herbert Fund Board grant recommendations. The motion was adopted. Motion: It was moved by Ms. Mary Sunden that the recommendations for the second cycle of grants recommended by the WJH Fund board's June meeting be ratified. The motion was adopted. WJH-06-17: East Orange, St. Agnes' & St. Paul's, Church & rectory repairs, $3,412 WJH-06-18: Short Hills, Christ Church, Boiler replacement & heating system repairs, deferred WJH-06-19: Denville, The Saviour, Rectory windows & parish hall roof, $14,000 WJH-06-20: Hackettstown, St. James', Church and chapel front steps, $6,038 WJH-06-21: Morris Plains, St. Paul's, Rectory roof & gutters, $5,750 WJH-06-22: Hope, St. Luke's, Church basement windows, $4,620 WJH-06-23: North Bergen, St. Peter's Korean, Basement water damage, mold contamination, $7,000 ($3,500 from Fund 1, $3,500 from Fund 2) WJH-06-24: Newark, House of Prayer, Rectory boiler replacement, $2,775 WJH-06-25: Tenafly, Atonement, Chapel drainage, interior repair, $6,750 WJH-06-26: Westwood, Grace, Church flat roof repair, $4,200 WJH-06-27: Millington, All Saint's, Rath House roof replacement, $6,750 Total Recommendation to Diocesan Council: $56,045 BELLEVILLE SENIOR HOUSING Ms. Mary Sunden reported that the application for funding the Belleville senior housing project was rejected by the Department of Housing and Urban Development (HUD). While that was unwelcomed news, the diocese can resubmit next year. The leadership of the Township of Belleville remains committed to the project and to the diocese as its partner. The Belleville housing task force will meet again and return to Council with a recommendation. OUTREACH GRANTS Ms. Mary Sunden reported that the schedule for the Diocesan Council Outreach grants for 2007 will remain the same as that used in 2006 with a submission deadline of February 1. The President called to order a Meeting of the Jersey City Episcopal Community Development Corporation. JERSEY CITY EPISCOPAL COMMUNITY DEVELOPMENT CORP. BOARD ELECTION Mr. Sidney King moved and it was seconded that the following persons be elected to the Board of Jersey City Episcopal Community Development Corporation: Motion: Resolved, that the following persons be elected to the board of the Jersey City Episcopal Community Development Corporation in the Class of 2006-2008: Brian McGovern, Community Representative, Director of Social Services at North Jersey Community Research Initiative; Edith Gallimore, Community Representative, Warden of Trinity + St. Philip's Cathedral, Newark; Tomas Portura, PNC Bank, Community Development (filling the vacant PNC Representation slot previously filled by Vanessa Nazario); The Rev. Joseph Harmon, Church of the Incarnation, Jersey City, Community Representative. The motion was adopted. Motion: It was moved and seconded to adjourn the Meeting of the Jersey City Episcopal Community Development Corporation. The motion was adopted. The President reconvened the meeting of the Diocesan Council. DISTRICT SHARING District 5: Ms. Susan Kynor reported that Mr. Bert Jones and The Rev. Wade Renn were the co-conveners. The meeting was closed with prayer by Mr. Sidney King and adjourned at 9:50 p.m. Respectfully submitted, Michael Francaviglia, Secretary  --Return to Diocese of Newark Home PageReturn to Top of Page |